Morning News Call - India, October 27

Reuters Staff

8 Min Read

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FACTORS TO WATCH
10:00 am: Railway Minister Piyush Goyal, Junior Railway Ministers Manoj
Sinha and Rajen Gohain at International Conference on Green Initiatives &
Railway Electrification in New Delhi.
10:00 am: Bandhan Bank MD Chandra Shekhar Ghosh at business conclave on
entrepreneurship and start-ups in Kolkata.
10:30 am: Government to select transaction advisors for Air India stake sale
in New Delhi. Seven firms to make presentation to disinvestment ministry.
11:00 am: Mphasis Q2 post-earnings conference call in Mumbai.
11:00 am: L&T Finance Holdings Q2 post-earnings conference call in Mumbai.
1:30 pm: Maruti Suzuki Chairman R.C. Bhargava and MD Kenichi Ayukawa to
address media on company’s Q2 results in New Delhi.
3:30 pm: IOCL Q2 earnings press conference in New Delhi.
5:00 pm: ICICI Bank post-earnings conference call in Mumbai.
5:00 pm: RBI releases weekly forex reserves data in Mumbai.
6:00 pm: Former RBI Governor Y.V. Reddy to speak at Patil Memorial Lecture
in Mumbai.
LIVECHAT - G7 FX CHARTING
Technical analyst and GMF regular guest Wilson Leung, chief market
strategist from TrendsetterFX, will discuss the trend of USD and other major
currency pairs ahead of Trump's decision on the next Federal Reserve chairperson
at 9:00 am IST. To join the conversation, click on the link: here
INDIA TOP NEWS
• Business stresses in PM Modi's backyard spur India's bank rescue
For three years, Prime Minister Narendra Modi had avoided the one step that
everybody from central bank officials to credit rating agencies had implored him
to take to fix the country's banking woes - a massive injection of cash.
• EXCLUSIVE-Vedanta, Adani may bid for $9 billion Indian diamond mine left
by Rio
Indian resources conglomerates Adani and Vedanta are considering bidding for
a $9 billion diamond project in the country that was abandoned by global miner
Rio Tinto this year, according to multiple sources with knowledge of the matter.
• Yes Bank bad loans spike in Q2 on RBI action, profit up
Yes Bank, India's fifth-biggest private lender by assets, saw its bad loans
spike in the second quarter after a central bank audit, although quarterly
profit rose 25 percent, helped by higher interest and fee income.
• United Spirits Q2 profit up about 86 percent
United Spirits Ltd posted a nearly 86 percent rise in quarterly profit on
Thursday, beating estimates.
• HDFC Life sets price range for up to $1.34 billion IPO
HDFC Standard Life Insurance Co. Ltd's initial public offering could raise
as much as 86.95 billion rupees after the Indian insurer set a 275-290 rupees
per share price range for the IPO on Thursday.
• Biocon Q2 profit more than halves
Biocon Ltd posted a 53 percent fall in quarterly profit on Thursday, missing
estimates, as higher costs at its Malaysia plant and pricing pressures in its
active pharmaceutical ingredients business weighed.
• India's $116 million stake sale in miner NLC subscribed 2.1 times
The Indian government is set to raise 7.5 billion rupees from the sale of a
5 percent stake in miner NLC India Ltd, with the issue getting subscribed 2.1
times in a two-day auction on the stock exchanges.
GLOBAL TOP NEWS
• Amazon sales surge after Whole Foods acquisition, busy Prime Day
Amazon.com Inc on Thursday said its sales surged over the summer and profit
trounced expectations, as shoppers jumped at "Prime Day" promotions on its
website and bought groceries at its newly acquired chain of Whole Foods Market
stores.
• Baby step but no big bang: ECB warily starts pulling back from loose money
The European Central Bank took a step towards weaning the euro zone off
loose money on Thursday but promised years of stimulus and even left the door
open to backtracking.
• Subaru was lax on final inspection rules for Japan cars -sources
Subaru Corp failed to follow proper inspection procedures for vehicles
destined for the domestic market at a factory in Japan, two people with
knowledge of the matter said.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty Futures were at 10,385.00, trading up 0.12 percent from its
previous close.
• Indian government bonds are expected to trade little changed in early
session, as investors may defer purchases ahead of a weekly supply of notes. The
yield on the benchmark 6.79 percent bond maturing in 2027 may trade in a 6.79
percent - 6.84 percent band.
• The Indian rupee will likely edge lower against the dollar in early trade,
in line with most Asian peers, after the greenback rallied against the euro
following the European Central Bank’s decision to extend current bond purchases
though at a reduced pace, hurting chances of a rate hike next year.
GLOBAL MARKETS
• The Dow and S&P 500 advanced on Thursday after a round of positive
corporate earnings announcements, but gains were curbed and the Nasdaq lost
ground on a drop in the healthcare sector.
• Asian shares gained as technology shares were boosted by upbeat earnings
from U.S. hi-tech giants while the euro hovered near three-month low against the
dollar after the European Central Bank extended its stimulus.
• The dollar stood tall, on track for weekly gains, while the euro slumped
to three-month lows after the European Central Bank extended its bond purchases
and reduced the chances that it would hike interest rates in 2018.
• U.S. Treasury yields inched higher on Thursday in choppy trading,
undermined by a soft auction of U.S. 7-year notes which saw demand at its
weakest since August last year.
• Oil prices inched up, with Brent crude approaching $60 a barrel, amid
tightening market expectations buoyed by comments from Saudi Arabia's Crown
Prince backing the extension of OPEC-led output cuts.
• Gold was little changed, after dipping to a three-week low as the dollar
gained against the euro after the European Central Bank extended its bond buying
programme.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.84/64.87 October 26 -$57.84 mln $141.62 mln
10-yr bond yield 6.96 pct Month-to-date $52.98 mln $2.30 bln
Year-to-date $5.41 bln $25.58 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.8300 Indian rupees)
(Compiled by Samrhitha Arunasalam in Bengaluru)